Baosteel (600019.SS) will have headquarters both in its home town of Shanghai and in Wuhan in Hubei province, The Paper said.

There are few companies in China which have two corporate hubs, which suggests that although Baosteel is taking over Wuhan, the smaller company is retaining some influence over the structure of the takeover.

The deal, announced earlier this year, is the government’s biggest effort yet to consolidate its steel industry.